Finance DECA Terms
Terms in this set (33)
A system that monitors an individual, business, or other organization's financial standing. This includes recording and verifying financial information to determine a profit or loss for a given time period as well as the value of assets, liabilities and owner's equity.
The process of determining a time specific financial plan for an individual, business or other organization to achieve a monetary goal.
The most common definition of "capital" is money invested in a business to generate income. Capital can also be defined as wealth in the form of an asset which can be an indication of strength of an individual, business, or country.
The amount spent to acquire or upgrade an asset that will increase the efficiency of the production or operations of a business for the long term.
A market for demand and supply of debt and equity capital. This is a highly decentralized system made up of three major parts: the stock market,bond market and money market.
Any activity provided by a vendor on behalf of a client. Depending on the business this can include customer service, financial management, informational technology, social media support, database management, etc. The services provided to a client are agreed on by both parties and detailed in a contract unless otherwise specified.
An open and organized marketplace where ownership titles or standard units of commodities are traded by its members.
Verification that a vendor meets the requirements of accepted practices , regulations, legislation, rules, standards and/or the terms of a contract.
Cost of Goods Sold
This line on an income statement shows the cost of raw materials and labor to produce a finished product or service that is available to a consumer.
A process to determine the cost of production or operation of a business by assigning expenses to various stages of production or operations of a firm.
Customer Relationship Management
At a minimum, this is a database of customer contacts, purchase history and technical support. Additional elements can include profiles of potential clients, understanding and leveraging the needs of current customers, and enhanced customer service based on a data analysis.
Information in an unorganized form (alphabets, numbers or symbols) that have a relationship with current conditions, ideas or knowledge.
The systematic organization of information that allows easy updating and analysis of data.
Economies of Sale
An internal or external reduction in long term costs when production or operation increases in size.
The possibility of loss, damage or injury outside of a business or other organization.
The process of managing money for an individual, business or other organization.
The worldwide development of economic, financial, trade and communication integration. This pushes business executives to consider broad views in the global marketplace as countries and their economies become interconnected and interdependent.
Monetary objectives of an individual, business or other organization that are decided by future needs of those entities.
Financial Information Management
Managing data such as credit card numbers, accounting balances or other monetary facts about an individual, business or other organization that are used when evaluating credit, loans or other financial activities.
Organizations that are public or private whom act as a channel between savers and borrowers if funds. There are two types of institutions: depository and non-depository. Depository organizations are usually banks or credit unions. Non-depository organizations are often recognized as insurance companies or mutual funds.
A market for the sale or purchase of stocks, bonds, bills of exchange, commodities, fortunes and options, foreign currency which work as an exchange for capital and credit. In the United States, well recognized markets include the New York Stock Exchange (NYSE), the S&P 500, and the Chicago Mercantile Exchange (CME or Merc).
The status of the assets, liabilities and owners equity of an individual, business or other organization as shown in its financial statements.
Financial ratios provide a comparison between financial statement items to determine the strength or weakness of a company. The most common ratios are: net sales to net worth and net income to net sales.
The financial documentation for an individual, business or other organization. The most common records are a Cash Flow Statement, Income Statement, Balance Sheet and Tax Returns.
Refers to the amount of income received by a company before ant expenses are deducted.
The possibility of loss, damage or injury within a business or other organization.
An inventory system allows a business to maintain the optimum number of each item. In doing so, a business can operate production of a good or service, sales or customer service at a lower cost.
A network of banks, discount houses, institutional vendors, and money dealers who borrow and lend among themselves for the short term (90 days). Any investment has risk, but a money market account is considered a safe place to invest due to its short term nature.
An investment tool such as bonds, debentures, notes, options, and shares.
Securities and Exchange Commission (Sec)
Government agency created in 1934 hat is responsible for enforcing securities-related laws and setting standards for financial information about businesses that are traded on a stock exchange. The SEC has five commissions who are appointed by the President and confirmed by the Senate who serve five year terms.
Information provided regarding an investment instrument issued by a corporation, government or other organization.
The area of law that governs taxation. A tax is a fee charged by the government on a product, service, income, or activity. The Internal Revenue Code is the name for all federal laws, which was first written in 1939 and has been revised multiple times to present day. Each state that collects a tax has their own department of taxation as well as local municipalities.
An agreement or contract that occurs between two or more parties and establishes a legal obligation. This can also be defined as an exchange of goods or services between a buyer and a seller.
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